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An investigation has been launched into claims that the world’s most popular fast food chain, McDonalds, made unsuitable portfolio investments and caused managers to lose money in their 401k retirement funds.
McDonalds provides an employee 401k plan as part of its employee benefits package. According to McDonalds employee recruitment materials, managers have the option to save up to 50 percent of their earnings directly into a McDonalds 401k plan, with McDonalds matching their contributions by 300 percent for the first 1 percent of pay the employee contributes and 100 percent for each dollar on the next 4 percent contributed.
Many McDonalds managers rely on their 401k plan for retirement income but this source of income may not be what they planned for since McDonald’s allegedly took 401k money and invested it into questionable ventures, subsequently decreasing the value of their managers’ 401k plans.
401k Retirement Protection
In 1971, Congress established the Employee Retirement Income Security Act (ERISA) to protect individuals’ retirement plans by setting minimum standards for pension and health plans offered to employees by businesses.
An Employee Retirement Income Security Act (ERISA) fiduciary in lay terms means someone personally responsible for the future retirement of employees, former employees and their beneficiaries. In a 401K plan, they are given titles like “plan sponsor, plan administrator and retirement plan committee member.”
Employers like McDonalds and other fiduciaries are mandated by ERISA to take care when managing 401k plan assets by avoiding conflict of interests and diversifying an investing employee’s portfolio. Should McDonalds or other fiduciaries breach fiduciary duty by not acting in the best interest of their employees and risking the value of a 401k plan, they are at risk  of an ERISA lawsuit.
Breach Of Duty
A 401k provider may be held liable for a breach of duty when the selection of investments by the plan’s investors was not prudent. In addition to making prudent investments, 401k plan investors are required to make certain disclosures.
When a court determines that a fiduciary has breached their duty of care, the fiduciary will be required to return any profits made through the use of plan assets. Breaching their fiduciary duty could mean that the company’s and/or the fiduciaries’ personal assets will be used to correct their errors, restore balances and pay fines. They will also be subject to any additional penalties which the court deems appropriate.
401k Plan Class Action Lawsuit Investigations
Many employers, like McDonalds, are suspected of including some reckless investments in their portfolios which, in turn, causes their employees’ 401k plans to lose value. Employees who suspect their 401k plan has been mismanaged by their employers are protected under the law.
McDonalds managers and employees who had a McDonalds 401k plan since 2007 can participate in a free class action lawsuit investigation to see if they have a legal claim.
Join a Free McDonalds 401k Class Action Lawsuit Investigation
A class action lawsuit investigation is currently underway to pursue the possibility of taking legal action against McDonalds for potentially violating ERISA. If you are a McDonalds employee who signed up for a McDonalds 401k account since 2007, you may have a legal claim.